The Sword of Damocles on the Dollar - Even the most hostile of the big banks are starting to change their minds when it comes to Bitcoin and cryptos. In the face of the plummeting US dollar, Goldman Sachs is actively seeking a new vice president to lead its new branch entirely devoted to digital assets.
Large multinational banking in search of crypto enthusiast
While Goldman Sachs is known to have recently changed his mind about Bitcoin and blockchain-based systems, this announcement remains striking.
On its website, the mega-bank announces that it is looking for a vice president specialized in digital assets to lead its London offices.
So, the anti-crypto criticism is over, since Goldman Sachs says he is looking for someone:
«Passionate about the potential of blockchains / distributed ledger technology (DLT) / digital assets (and preferably with experience working in this area). »
A change of course due to a future paradigm shift?
If the big bank is, contrary to its habits, ready to think outside the box of traditional finance, it is probably because the world economy itself appears to be undergoing a big change.
Indeed, as Bloomberg explains, even the largest hedge funds are selling the US dollar. Something that had not happened for more than 2 years for the current world reserve currency.
The safe haven status of the dollar, briefly seen at the height of the Coronavirus crisis last March, appears to have completely evaporated. The greenback is collapsing in its quote against the euro. We have to go back to May 2018 to find the dollar in such a bad patch.
« The long-term downtrend [of the dollar] is clear, especially compared to countries now practicing currency printing (QE) and experiencing a better recovery (…). You could still have a little reversal in this trend, but it would be an opportunity to sell [the dollar] (…) », Ashvin Murthy, founder of the AVM Global Opportunity hedge fund
With this weakness in the US dollar, we understand better why big banks like Goldman Sachs are starting to look elsewhere. Among the alternatives, Bitcoin and blockchain-based cryptocurrencies appear more and more credible.